An apparatus for setting a plug in a borehole penetrating a subsurface formation includes a tool mandrel defining a chamber having a port and a power charge disposed in the chamber for emitting a pressurized gas upon ignition. The apparatus also includes an outer sleeve at least partially surrounding the tool mandrel and defining an annulus between the outer sleeve and the tool mandrel where the annulus is in communication with the port. The apparatus further includes a piston disposed in the annulus and having an outer surface facing uphole within the annulus, the piston being in mechanical communication with a setting sleeve of the plug, wherein displacement of the setting sleeve causes setting of a slip and a seal of the plug.